Authored by Angie Gentry
Small business owners are required to wear many hats. This means having to balance many tasks efficiently and effectively. If a business’ systems are not properly organized, tasks pile up, paperwork gets lost and valuable time is spent on finding information that should be readily available. Good organizational skills can save a business owner time and reduce stress.
Time is Money
Disorganized business owners may find themselves searching through piles of paperwork for that one invoice, bank statement or human resources file. This problem can extend to the virtual office as well. Using neatly organized folders to keep track of important bills or emails, for example, can save time. Good organizational skills can free up much-needed minutes every day for you to spend on more important tasks.
Keeps the Taxman Happy
At tax time, finding the appropriate documents can be stressful and time-consuming for a disorganized business owner. Missing documents can even turn into a legal hassle if the company undergoes an audit. Filing receipts, invoices and statements properly, and using basic accounting software to track sales, expenses and receivables, will make the entrepreneur (and his accountant) much happier at tax time.
Planning the Cash Flow
Organization is the root of a good financial management program. Systems that monitor receivables can help business owners keep track of their money and plan cash flow. With no system for organizing sales and invoices, balances can go unpaid without notice. If vendors aren’t paid and the supply chain shuts down due to a delinquent balance, business suffers. Staying on top of how much money is going in and out can help the owner make adjustments to reduce spending or increase sales.
Winning Repeat Business
Problems with organization can lead to a drop in customer service. For example, if an online store’s order processing system is not properly organized, customers may not receive orders on time. Customer satisfaction is the key to earning repeat business, and if the company is not well organized in this area, revenue will also suffer. Poor billing systems can potentially result in customers being charged multiple times for one item or not at all, which is also bad for business.
Reducing Stress and Overwhelm
Working in an unorganized environment can make a business owner and employees feel constantly on edge. Not knowing where to look for information, sorting through unorganized paperwork and dealing with the consequences of poor organization create a stressful workplace. That stress may extend into the rest of a business owner’s life and lead to job burnout. Implementing good organization systems can help reduce this stress and give a business owner more time to enjoy life outside work.
